When it comes to growing the controversial cannabis plant, there’s so much to consider.
Cannabis demand continues to surge as the market constantly churns out various products like tinctures, creams, edibles, vapes, and even pet products to serve the growing cannabis user base.
This has been particularly fueled by decreasing restrictions on cannabis regulations throughout the world, with countries like Uruguay, Canada, and South Africa allowing recreational use without any legal recourse.
With Canada’s legal cannabis market now accessible for anyone 18 and over, demand is projected to be around 610 tons, much higher than current supply. Around 210 tons is expected to be grown within the first year following official implementation of the legal market.
University of Waterloo economics professor Anindya Sen and C.D. Howe policy analyst Rosalie Wyonch stated, “The important policy conclusion is that there will not be enough legal supply, especially during the first half of the year following legalization, primarily because of the slow rate of licensing producers.”
With the entire market expected to hit a market cap of $7.17 billion by 2019, there will be 97 producers with the proper licensing permits by 2018 Q4. Their efforts along with newly established companies will continue to scale efforts to maximize productivity and enhance cultivation capabilities with innovative technology to promote maximum harvests to meet the huge demand.
To the south, the U.S. is seeing a similar growth rate in the industry and despite the fact that cannabis remains a federally prohibited schedule 1 substance, the market continues to flourish. Key decisions such as the FDA’s very first approval of a cannabis-based medicine to treat rare forms of epilepsy, and the DEA reclassifying a cannabis derivative for the first time mark a slow but gradual acceptance of cannabis as a legal substance that can likely be a source of medical relief.
This has prompted major activity in both recreational and medicinal markets in states such as California, leading to increased cultivation efforts to keep pace with the growing demand for casual users and medical patients.
While enhanced yields for maximum commercialization are the focus for the various distributors, it is essential to understand the key elements of a successful yield including adequate infrastructure for cultivation grounds and methods, as well as targeting a particular product or niche. Not only that: retailers supplying raw materials are also necessary for today’s cannabis businesses.
Getting started on the right note
Outdoor growth is probably the cheapest method of cultivation but is also subject to a level of uncertainty due to natural elements like weather, sunlight, rain, as well as the potential for calamities that can wipe out a precious harvest. Growing outdoor is more of a long-term investment culminating in a single large-scale harvest, sometimes at a trade-off with quality crops.
A sound strategy, according to MJ Biz Daily, is to procure early stage investments to solidify growth operations rather than attempting to cut costs in the initial business construction phase. Funneling resources into technological solutions to strengthen a cultivation center can provide handsome rewards through tightly controlled crop environment that will also cut down on any possible hitches along the way.
Truth be told, these can be costly but the enhanced efficiency will result in conservation and prevention of excessive resource expenditures which can result in massive electrical and water bills. This is one of the most common issues that cultivators face and savvy business owners should tackle these in advance through various solutions available in the market.
For example, greenhouses can be an effective and versatile method of cannabis cultivation with the appropriate provisions. This mechanism allows for the ability to fine tune specific cultivation settings while also promoting year round growth for increased production. While the solutions needed to bring about ideal conditions can be costly, it can help balance out the ideal factors needed for healthy harvests.
Offering such a solution is Smart Cannabis Corp. (OTCMKTS:SCNA), a holding company that provides turnkey solutions and comprehensive project development consultation services through subsidiaries Next Generation Farming and the newly established SAP Investments.
Smart Cannabis has rapidly increased its cannabis cultivation solutions alongside innovative greenhouse facilities that feature the benefits of being compact and allowing for side by side construction to efficiently use an available land.
The company recently developed two new products to implement another layer of fine-tuning in its SMART greenhouses by providing lighting and filtration services.
Having managed to sell over 800 units, the SMART Multi-Spectrum Grow Light features efficient LED lights that are set to enhance output or to speed up the growth cycle depending on cultivation needs. Pre-installed fans will also help manage clean air and durable lighting solutions for the benefit of cannabis businesses while the energy efficient lights will promote healthier plants through increased exposure.
Cannabis growers can complement the effective lighting system with the SMART Filtered-Air recirculation System to facilitate clean and fresh air throughout the greenhouse by minimizing any resulting odors or microbes. The system works by dehumidifying the air through a carbon filter that will help alleviate the oftentimes potent odors emanating from the various terpenes in the plant.
On the other hand, SAP Investments can help in the business side of the industry by promoting knowledge and strategic partnerships. SAP has acquired over $2.4 million in contractual agreements with cannabis brands in the industry, which includes a $1.8 million construction contract to build a cultivation facility in Salinas, California. This key growth center is also being retrofitted with eighteen of their proprietary SMART greenhouses along with their Geo Thermal Exchange System, which will help maintain optimal temperatures for maximum growth and increased harvests throughout the year.
Smart Cannabis is also undertaking the development of 126,340 sq.ft of greenhouse facilities throughout various locations in Northern California as part of a strategic partnership with Yolo County based CompassLeaf LLC that’s worth over $600,000.
It has also introduced two new types of SMART Greenhouses in order to provide a wider range of effective solutions to cannabis cultivators in search of a highly controlled climate to promote optimum growth.
To meet the cannabis demands in rapidly legalizing markets, cultivators will need to know the optimum elements for growing healthy plants while also understanding where they stand in the sector. Rather than attempting to pinch money up front, it is often a better idea to acquire technological solutions to launch their cultivation efforts with a solid foundation in place.
Written by Anna Reyes